Market Institutions, Fair Value, and Financial Analyst Forecast Accuracy
研究中国上市公司公允价值信息对分析师预测准确性的影响，发现整体公允价值与预测准确性负相关，且市场制度（政府干预、法律环境）会影响分析师对公允价值的使用。
This study investigates the valuation usefulness of fair values and related information disclosure in China and examines how regional‐level market institutions influence the valuation usefulness of fair value information. Based on a sample of Chinese listed companies during 2007 to 2016, the empirical results show a negative association between overall fair values and analyst forecast accuracy. Further analyses suggest that the negative association is likely driven by biases and/or errors in fair value estimates. Using a difference‐in‐difference research design, the study also documents that the implementation of ASBE 39 in 2014 has improved the valuation usefulness of fair values. There is evidence that different aspects of market institutions—including the extent of government intervention in the market and the legal environment—influence analysts’ use of fair value information. This study contributes to the literature by providing new and different evidence on the usefulness of fair values to financial analysts outside developed countries. Moreover, by taking advantage of the uneven institutional development across China, the study shows that different aspects of market institutions influence the valuation usefulness of fair value information.